Gazprom Neft has started commercial production and oil deliveries from the Badra field in Iraq.
Located in Wasit province in eastern Iraq, the Badra oil field development project is expected to last 20 years with a potential extension for five years.
The preliminary estimates suggest that geologic reserves at the Badra field amount to three billion barrels of oil.
The first oil is being delivered to Iraq’s main pipeline system for transfer to the export terminal in Basra (Persian Gulf).
Gazprom said the existing deliveries from Badra to the pipeline stand at more than 15,000bpd.
As per the service contract with the Government of Iraq, the consortium of investor firms will receive a share of the oil produced at the field after a period of 90 days upon the commercial supply launch.
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By GlobalDataThe Iraqi State Oil Marketing Organization will look after oil sales and deliver a share of oil to the investor companies each quarter to reimburse their initial project costs.
Under the contract, investors will be reimbursed for costs incurred and receive $5.5 per barrel of oil produced.
Each investor company will be allowed to sell their share of oil independently.
Gazprom Neft management board chairman Alexander Dyukov said: "Over the period of just a few years, a consortium of companies led by Gazprom Neft has fully prepared Badra, one of the most complex geological field structures in Iraq, for full-scale commercial development.
"This is the first major international project in upstream the company has implemented from scratch.
"The unique experience gained during this project will contribute to our development of future projects both in Russia and internationally."
Gazprom Neft holds 30% stake in the project, while KOGAS, PETRONAS and TPAO own 22.5%, 15% and 7.5% respectively.
The Iraqi Government, through the Iraqi Oil Exploration Company (OEC), holds 25% interest in the project.
Image: Badra oil field in Iraq. Photo: courtesy of Gazprom Neft.
